Credit Card | Debt | Debt Management

Credit Card Debt Increased During Federal Government Shutdown

November 13, 2025 by
Federal Government Shutdown

Federal Government Shutdown Leaves Thousands Searching for Debt Relief

The federal government shutdown had millions of Americans wondering when their next paycheck would arrive. Roughly 1.4 million federal employees went without pay for 43 days. More than half of them (730,000) still worked. But worked without pay. Hopefully, the government will pay retroactively. The remaining 670,000 were furloughed. In other words, the government sent them home without pay.

Employees that had money in savings likely tapped into those funds to make ends meet. And those without an emergency fund may have turned to credit cards or personal loans to survive. And who knows what those without savings AND maxed out credit cards did to survive.

Short Term Solution: Credit Card Financial Hardship for Federal Government Shutdown Employees

When struggling to pay back your credit card debt thanks to the federal government shutdown, there are two main options to consider. First, Internal Financial Hardship Programs offered directly by your credit card issuers. On this program, most creditors typically lower your monthly payment along with your interest rate.

You will need to call your creditor directly. Ask to speak with their Financial Hardship Department. Be prepared to provide details of your financial situation. Inform them of exactly how much income you lost and how long you went without pay. If you’ve had a major increase with an expense, provide details and the dollar amount of that as well. Refrain from mentioning non-essential expenses such as travel, entertainment and eating out. Stick with your essential expenses such as rent, food, utilities, medical and insurance

Long Term Solution: Credit Counseling for Government Employees

While the Internal Financial Hardship Program offers payment and interest rate relief, these benefits are usually temporary. Typically, they last only 6-9 months. And during that time, the payment is so low, you’ll hardly make a dent toward the balance.

Consider Credit Counseling for a long-term solution to attack your debt. Credit Counseling agencies offer Debt Management Programs that can help lock in lower payments and interest rates for 60+ months. These nonprofit agencies work with all the major credit card companies including:

  • Chase
  • Capital One
  • Citibank
  • Discover
  • Credit One
  • American Express
  • Bank of America
  • Wells Fargo
  • Navy Federal Credit Union
  • USAA
  • Barclays
  • US Bank
  • Comenity Bank
  • Synchrony Bank
  • And Many More

Most Debt Management Plan have you debt free in 3-5 years. However, some creditors offer 72-month plans to reduce your payments and interest rates even further. Contact DebtWave today at 888-686-4040 or schedule on appointment online.